What is position power?

What is position power?

• A. The budget authority
• B. The ability to inspire others
• C. The authority to set company vision
• D. The leader's authority to hire, fire, promote, discipline

Answer: (D)

Position power is the formal authority that comes with a specific job role in an organization. It encompasses the authority to hire, fire, promote, and discipline employees, as well as the power to assign tasks and approve resources. This is why the description tied to the leader’s authority to hire, fire, promote, and discipline best captures the concept. Budget authority is related but only a facet of formal power—controlling money is part of the role, but it doesn’t define position power by itself. The ability to inspire others and the ability to set company vision stem more from personal influence and leadership style rather than the formal authority attached to the position.

Position power is the formal authority that comes with a specific job role in an organization. It encompasses the authority to hire, fire, promote, and discipline employees, as well as the power to assign tasks and approve resources. This is why the description tied to the leader’s authority to hire, fire, promote, and discipline best captures the concept.

Budget authority is related but only a facet of formal power—controlling money is part of the role, but it doesn’t define position power by itself. The ability to inspire others and the ability to set company vision stem more from personal influence and leadership style rather than the formal authority attached to the position.